FINANCIAL PERFORMANCE ANALYSIS OF PT. MATAHARI DEPARTMENT STORE, TBK FOR THE PERIOD 2014-2018

• Main Author: Nelson Adolf, Jap
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42602
• Institution: Institut Teknologi Bandung

Indonesia remains one of the most promising markets among Asian countries, with its large population that ranked fourth in world population and growing middle class with higher household purchasing power, also its increased spending habits. Higher population will lead to higher demand to satisfy the Indonesian people, especially from food and beverage sector, apparel and footwear, personal and household care, etc. By the advancement of technology, people consumption behavior was influenced and made the competition map in the retail sector shifted with not only large company that took part but micro, small, and medium enterprises(MSMEs) also took part in satisfying Indonesian consumers. And one of the sector that was impacted from advancement of technology, was apparel and footwear sector. Matahari was one of the pioneer in department store (retail) operator in Indonesia that now facing changing shape market and business environment. Since consumers spending appeared to be focused more on saving, travel, and recreation. In the last three years, Matahari’s revenues was still increasing but its net income was getting decreased every year. Therefore, the purpose of this study is to assess the financial performance of Matahari for the period 2014 to 2018. And to measure financial performance of Matahari, the Author use the decree of the Ministry of SOEs No. KEP-100/MBU/2002 and DuPont framework to be the base to analyze the financial health of Matahari and its profitability in the last five years. DuPont analysis was done to analyze the most influenced factor that will affect the company’s Return on Equity. There are eight financial ratios that are used, Return on Investment; Return on Equity; Cash Ratio; Current Ratio; Collection Period; Inventory Turnover; Total Asset Turnover; Total Equity to Total Assets. There are three levels on health assessment , which are healthy (AAA,AA,A); less healthy (BBB,BB,B); unhealthy (CCC,CC,C). The result of the eight financial ratio from 2014-2018 concluded that Matahari was in healthy category and tend to be increased (from AA to AAA). Matahari had the best financial health between two competitors (MAP and Ramayana).